Rupee depreciated 8 paise to shut at 86.96 (provisional) towards US greenback weighed down by sustained overseas fund outflows and an uptick within the US Greenback index.
Attributable to persistent outflows of overseas funds and a rise within the US greenback index, the rupee misplaced 8 paise to settle at 86.96 (provisional) versus the US greenback.(REUTERS//Vivek Prakash)
Foreign exchange merchants stated there’s a unfavourable bias for the USD/INR pair as overseas traders proceed to promote home equities and the RBI help is truly fizzling out slowly.
On the interbank overseas alternate, the rupee opened at 86.94 and touched the excessive of 86.91 towards the buck throughout intraday. It additionally touched the low of 86.98 earlier than ending the session at 86.96 (provisional) towards the greenback, logging a lack of 8 paise from its earlier shut.
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On Monday, the rupee depreciated 17 paise to close at 86.88 against the US dollar.
Traders said disappointing trade deficit data from the domestic markets too pressurised the rupee.
India’s exports declined for the third month in a row in January, falling by 2.38 per cent year-on-year to USD 36.43 billion, while the trade deficit widened to USD 22.99 billion in the month.
Imports rose by 10.28 per cent year-on-year to USD 59.42 billion in January due to an increase in gold shipments, according to the Commerce Ministry data.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 106.95, higher by 0.35 per cent.
Brent crude, the global oil benchmark, was quoted 0.77 per cent higher at USD 75.80 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex declined 29.47 points, or 0.04 per cent, to settle at 75,967.39, while the Nifty fell 14.20 points, or 0.06 per cent, to 22,945.30 points.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹3,937.83 crore in the capital markets on net basis on Monday, according to exchange data.
“We expect the rupee to trade with negative bias amid weak domestic equities and a recovery in the US dollar. FII outflows may also weigh on the rupee. However, any further intervention by the RBI may support the rupee at lower levels.
“Traders may take cues from speeches by the Federal Open Market Committee (FOMC) members,” Choudhary said, adding that “the USD-INR spot price is expected to trade in a range of 86.75 to 87.20.”
On the global front, Chinese President Xi Jinping on Monday asked business leaders to unleash their talents in a rare meeting with billionaires including Jack Ma, founder of e-commerce giant Alibaba, in a bid to shore up sagging business confidence and reverse economic slowdown.
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The assembly got here amid considerations over Donald Trump’s resolution to hike tariffs towards Chinese language exports to the US amid the slowdown of the Chinese language financial system, which hovered at round 5 per cent GDP progress in the previous few years.